NEW YORK, May 17 — US equities climbed as Warren Buffett’s bet on Apple Inc. sent the iPhone maker’s shares rallying, while crude’s surge to a six-month high amid speculation a supply glut has eased boosted shares in commodity producers around the world.

The S&P 500 Index rebounded after three weeks of losses as Apple jumped the most in 10 weeks after Berkshire Hathaway Inc. disclosed a stake. Oil extended last week’s gains past US$47 (RM189) a barrel as Goldman Sachs Group Inc. increased its price forecast, saying the market had moved into a supply deficit earlier than expected.  Precious metals rallied with aluminium and commodity producers climbed, lifting shares in developing nations.

An Apple logo is seen at the Apple store in Munich, Germany, January 27, 2016. — Reuters pic

The pickup in raw-materials prices boosted global equities after about US$1.8 trillion was wiped off the value of the securities in the first two weeks of May amid weaker economic data and disappointing earnings reports. Buffett’s bet on Apple lifted the iPhone maker’s shares from the lowest level since 2014 amid speculation sales growth will continue to slow. A Friday report showing a jump in American retail sales bolstered the case for the Federal Reserve to raise interest rates.

“The price of oil and other commodities seem to be catching a bid so there’s hope there will be improvement in the industrial side of the economy,” Craig Sterling, head of US equity research at Pioneer Investments in Boston, said by phone. “Earnings are over more or less and the market is searching to see what the second half of the year will look like. It was a crazy week last week with retail stocks blowing up and then retail sales overall were strong so there’s a little bit of a bounce back right now.”

Stocks

The S&P 500 rose 1 per cent to 2,066.65 at 4pm in New York, rebounding from a third weekly decline, its longest streak since January. The gauge topped its average price during the past 50 days after closing Friday below the level for the first time in two months.

Apple jumped 3.7 per cent after Buffett’s Nebraska company disclosed a stake in the tech giant worth more than US$1 billion at the end of the first quarter. Yahoo! Inc. rose as people familiar with the matter said Buffett is backing a group bidding for the company’s Internet assets.

Anacor Pharmaceuticals Inc. advanced after Pfizer Inc. said it would buy it. Memorial Resource Development Corp. climbed as Range Resources Corp. agreed to purchase it. Tribune Publishing Co. surged after Gannett Co. boosted its all-cash offer for the publisher.

The Stoxx Europe 600 Index erased losses to close little changed. German and Swiss markets were among those shut, and volume of shares changing hands was about 47 per cent lower than the 30-day average.

The MSCI Emerging Markets Index added 0.2 per cent after falling as much as 0.4 per cent yesterday. Benchmark gauges in Russia, Poland, South Africa and the Philippines climbed at least 1 per cent.

“The firmer oil price is helping emerging-market equities today despite the weaker China data over the weekend,” said Michael Wang, a strategist at hedge fund Amiya Capital LLP in London, who favours Indian, Mexican and South Korean stocks.

Commodities

Brent rose 2.4 per cent to end at US$48.97, the highest close since November. 3. China’s refineries processed crude at record rates in April, helping ease a supply glut as the number of active rigs in the US declines.

West Texas Intermediate climbed 3.3 per cent to US$47.72. Goldman Sachs raised its oil-price forecast for the second half to US$50, from a March estimate of US$45.

Gold advanced as holdings in exchange-traded funds backed by the metal climbed for a 14th straight day, reaching the highest in more than two years. Futures for June delivery rose 0.1 per cent to settle at US$1,274.20 an ounce in New York.

Currencies

The Bloomberg Dollar Spot Index held near its highest close since March as the greenback gained 0.3 per cent versus the Japanese yen. Improved economic data in the US prompted speculation that a boost to interest rates this year, and possibly even as soon as next month, just became more likely. The odds of a US rate increase by September are 37 per cent, Fed funds futures show.

The currencies of commodity-exporting countries gained as crude prices surged to a six-month high. The Brazilian real, Norwegian krone and Canadian dollar advanced against the US currency as oil gained more than 2 per cent.

South Africa’s rand fell for a second day, heading for its weakest level against the dollar in two months, after reports that police are set to arrest Finance Minister Pravin Gordhan over alleged irregularities at the nation’s revenue service.

Bonds

Treasuries fell, sending the yield on 10-year notes higher by five basis points to 1.75 per cent. The difference between two- and 10-year debt yields was at the narrowest since 2007, based on closing prices. The spread between the securities was at 94 basis points, compared with 122 basis points at the end of last year.

JPMorgan Chase & Co. analysts led by Alex Roever joined a growing chorus of banks to pare year-end projections for the 10-year note yield, trimming their estimate to 1.9 per cent from 2.15 per cent.

The Treasury Department has released a breakdown of Saudi Arabia’s holdings of US debt, after keeping the figures secret for more than four decades. The stockpile of the world’s biggest oil exporter stood at US$116.8 billion as of March, down almost 6 per cent from a record in January, according to data the Treasury disclosed yesterday. — Bloomberg